Howard Hughes Holdings Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net loss attributable to common stockholders was $1.1 million for the quarter, compared to net income of $119.5 million in the prior-year period.
• Total revenues were $636.3 million for the quarter, up from $390.2 million in the prior-year period.
• Net earned insurance and reinsurance premiums were $315.8 million.
• Reported underwriting loss was $5.7 million with a combined ratio of 101.8% (loss ratio 63.5%, expense ratio 38.3%); underlying results excluding purchase accounting adjustments showed underwriting income of $16.1 million with a combined ratio of 94.9%.
• Investment portfolio delivered net insurance investment income of $22.7 million and net investment gains of $50.9 million.
• AdVantage insurance-linked securities (ILS) structure contributed $13.0 million in net fee income.
• Income before income taxes was $76.6 million, including the impact of purchase accounting.
• Master Planned Communities (MPC) EBT was $89.5 million, down $115.5 million from $205.0 million in the prior-year period.
• Total Operating Assets Net Operating Income (NOI) increased 8% to $73.0 million, compared to $67.9 million in the prior-year period.
• Closed on two sales of Municipal Utility District (MUD) receivables generating $177.6 million in net cash proceeds, resulting in a GAAP loss of $105.4 million.
• Cash and cash equivalents were $2.87 billion as of September 30, 2026, compared to $1.47 billion as of December 31, 2025.
• Total assets were $16.32 billion as of September 30, 2026, compared to $10.64 billion as of December 31, 2025.
• Total liabilities were $11.25 billion as of September 30, 2026, compared to $6.80 billion as of December 31, 2025.
• Mortgages, notes, and loans payable, net, were $5.70 billion as of September 30, 2026, compared to $5.11 billion as of December 31, 2025.

Guidance and Future Outlook:

• Announced intention to transition the real estate model to an asset-light real estate development and asset management platform by monetizing select real estate assets through asset sales and joint ventures.
• The transition to an asset-light strategy involves redeploying proceeds from asset sales into the Vantage insurance platform.

Business Segments and Product Lines:

• Vantage: Contributed $315.8 million of net earned insurance premiums and $76.6 million of income before income taxes in its first full quarter under Howard Hughes.
• Howard Hughes Communities (HHC):
  • MPC EBT was $89.5 million.
  • Total Operating Assets NOI was $73.0 million.
  • Sold 307.7 residential acres at an average price of $1.2 million per acre and 9.8 commercial acres at an average price of $0.9 million per acre during the first nine months of 2026.
  • Pricing remained strong during the first nine months of 2026.
  • MPC EBT decline was primarily due to a bulk sale of 231 acres in Summerlin in Q3 2025 and a $19.4 million loss associated with the consolidation of the Floreo joint venture.
  • Operating Assets Segment EBT was $(9.1) million for the quarter, compared to $(7.2) million in the prior-year period.
  • Strategic Developments Segment EBT was $17.8 million for the quarter, compared to $11.3 million in the prior-year period.

Market and Competitive Landscape:

• The investment portfolio transitioned to a structure based on common equities and U.S. treasuries.
• Losses included no catastrophe losses, $4.0 million of favorable prior-year development, and were impacted by a single current large loss in a specialty line.

Risks and Challenges:

• Risks include the ability to transition the real estate business into an asset-light platform on the anticipated timeframe, including raising third-party capital on favorable terms.
• Risks include the ability to monetize real estate assets at anticipated values and timeframes, and to redeploy proceeds into Vantage.
• Risks include the ability to realize benefits of transactions with Pershing Square and to identify/consummate transactions as part of the diversified holding company strategy.
• Risks include integrating Vantage's insurance and reinsurance business and realizing anticipated financial and strategic benefits.
• Risks related to continued operations of Vantage's insurance and reinsurance business, including the ability to accurately assess underwriting risk and establish adequate premium rates.
• Dependence on the operations and funds of subsidiaries, including The Howard Hughes Corporation and Vantage.

Management Commentary and Tone:

• The Vantage transition to HHH is described as being in full effect.
• Vantage posted solid results during its first full quarter in Howard Hughes.
• Howard Hughes Communities advanced its asset-light strategy for real estate development and asset management.

Other Key Points:

• The Company is a diversified holding company with principal subsidiaries Vantage Group Holdings (specialty insurance, reinsurance, and partnership capital platform) and Howard Hughes Communities (real estate platform).
• The Company issued 140,000 shares of Series A non-voting exchangeable perpetual preferred stock as of September 30, 2026.
• The Company closed on the sale of Municipal Utility District (MUD) receivables associated with Bridgeland and The Woodlands Hills.
• The Company announced the consolidation of the Floreo joint venture, resulting in a $19.4 million loss.
• The Company hosted a third quarter 2026 earnings conference call on November 6, 2026.